REG - Critical Metals PLC - Company Update

Critical MetalsAnnouncement

09/03/2022 16:45

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RNS Number : 2367E  Critical Metals PLC  09 March 2022

 

 

 

Critical Metals plc / EPIC: CRTM / Market: Main Market / Sector: Closed End
Investments

 

 9 March 2022

Critical Metals plc

("Critical Metals" or the "Company")

 

Company Update

 

Critical Metals plc, a mining investment company established to acquire mining
opportunities in the critical and strategic metals sector, is today providing
an update regarding its proposed acquisition of a majority interest in the
copper/cobalt project located within Small Scale Mining License PEPM 14784 in
the Democratic Republic of Congo (the "Molulu Project") (the "Proposed
Acquisition").

 

The Board, alongside the Company's advisers, has been focussed on progressing
the Proposed Acquisition, including completing the requisite due diligence,
corporate structuring, and preparation of the documentation associated with
the Proposed Acquisition and Reverse Takeover process under the FCA's Listing
Rules.

 

The Board is cognisant of the frustrations of shareholders to the time it is
taking to finalise the Proposed Acquisition. The Company has experienced
unexpected delays in a large part to the asset being in a non-English speaking
jurisdiction, which is therefore inherently more time consuming and often
complex. As we have noted before, the management team and legal advisors in
four different jurisdictions, are ensuring all agreements are prepared, and
are in compliance with, the new Mining Code of the DRC that was announced in
November 2021.

 

The Company has sufficient cash reserves and as of 31 December 2021, had
£1,069,770 in net cash and £23,686 in total liabilities.  Many of the
legal, accounting, and advisor costs associated with this transaction have
already been paid by the Company prior to the 31 December 2021 year end.

 

All key advisers continue to advance workstreams in relation to due diligence
and application for readmission to trading on the Standard List, including the
preparation of a Prospectus, is at an advanced stage. A Competent Persons
Report has been prepared in respect of the Molulu Project and the audit and
conversion of the last three years of Madini Occidental Ltd accounts into an
IFRS compliant format is progressing.

 

For clarification, the Company confirms that following the FCA's Listing Rule
changes that became effective 3 December 2021, it has until 4:00pm on 1
December 2023 to complete a transaction that is under a £30 million market
capitalisation on admission.

 

The Board remains of the view that, despite these delays, the Proposed
Acquisition represents an excellent opportunity to acquire a controlling
interest in a highly prospective copper/cobalt project, which has previously
been in production and can be quickly brought back into operation to generate
near-term free cashflow, in particular in the current commodity environment.

 

The Board looks forward to providing further updates in due course.

 

 

**ENDS**

 

For further information on the Company please visit www.criticalmetals.co.uk
(http://www.criticalmetals.co.uk) or contact:

 

 Russell Fryer                                      Critical Metals plc                           Tel: +44 (0)20 7236 1177

 Rory Murphy / James Bellman                        Strand Hanson Limited                         Tel: +44 (0)20 7409 3494

                                                    Financial Adviser

 Lucy Williams /                                    Peterhouse Capital Limited, Corporate Broker  Tel: +44 (0)20 7469 0936

 Duncan Vasey                                                                                     Tel: +44 (0)20 7469 0933

 Catherine Leftley / Oonagh Reidy/ Isabelle Morris  St Brides Partners Ltd,                       Tel: +44 (0)20 7236 1177

                                                    Financial PR

 

About Critical Metals

Critical Metals was formed as an investment company and intends to make equity
investments into operators or near-term production operators within the
natural resources development and production sector in the continent of
Africa. It is envisaged that such acquisition or acquisitions will trigger a
reverse takeover in accordance with the listing rules. The Company intends to
search initially for acquisition opportunities in the natural resources sector
on known deposits and more specifically minerals that are perceived to have
strategic importance to future economic growth. Commodities such as antimony,
beryllium, cobalt, copper, fluorspar, gold, rare earth elements, tin,
tungsten, titanium, and vanadium have been identified by several governments
as "critical minerals" and so guaranteeing supplies is seen as a strategic
necessity. The Company therefore believes that the market conditions for these
minerals will remain strong in the short-to-long term.

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